It is possible for the absolute price of a good to rise at the same time that the good's relative price is falling.

Question

Quizplus · Accepted Answer

The absolute price of a good refers to the actual numerical value of the price, while the relative price refers to the price of the good compared to other goods. It is possible for the absolute price to go up while the relative price of the good is decreasing compared to other goods. For example, if the price of a loaf of bread increases from $2 to $3, but the price of other goods, such as milk and eggs, increases even more, then the relative price of bread may actually be decreasing even though its absolute price is going up.

It Is Possible for the Absolute Price of a Good